What: Boohoo Group reported a 15% drop in revenue and a widening loss for the first half of 2024, while its Debenhams division experienced strong growth, and the group announced plans to raise over GBP 39 million through share sales.

Why it is important: Despite Boohoo's overall struggles with declining sales and profits, Debenhams' impressive performance, particularly in its marketplace and beauty sectors, offers a bright spot. The fundraising plan is crucial for Boohoo as it seeks to stabilise its financial position amid challenges from major shareholder Frasers Group.

Boohoo Group revealed a challenging first half of 2024, with revenue dropping 15% to GBP 619.8 million and gross profit falling by 19.2%. The company reported an adjusted pre-tax loss of GBP 27.4 million, significantly wider than the previous year's GBP 9.1 million loss. Despite these setbacks, Debenhams, a key part of Boohoo's portfolio, saw gross merchandise value (GMV) rise by 31.2%, driven by strong growth in its marketplace and beauty segments, which expanded by 170%. Additionally, Boohoo announced a GBP 39 million fundraising plan through share sales to institutional investors and retail offers. The group also urged shareholders to reject proposals from Frasers Group, its largest shareholder with a 27% stake, citing conflicts of interest. Looking ahead, Boohoo expects improved GMV and EBITDA in the second half of FY25.

Boohoo faces profit decline, but Debenhams shines amid fundraising efforts